Connolly: Apply extra TARP funds to deficit

U.S. Rep. Gerald E. Connolly (D-Va.) sent a letter to House Speaker Nancy Pelosi today signed by 13 other freshman Democrats urging the use of a "substantial portion" of unspent or repaid Troubled Asset Relief Program funds to reduce the federal deficit.

Connolly noted that some members of Congress have proposed ways to spend unused TARP funds, including job creation. "These are worthwhile projects," Connolly said, "but the first priority should be deficit reduction."

U.S. Treasury officials estimate that between $210 billion and $260 billion in TARP funds could be available in the next 12 to 18 months. President Obama has said he hopes a portion of the money can go toward deficit reduction.